The US government has proposed new tax incentives for businesses that buy vehicles that run on alternative fuels, reported Reuters.

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Electric, lean burn diesel and hybrid vehicles would be covered, as well as vehicles running on other fuels such as CNG.


Vehicles powered by ethanol and ethanol-petrol blends would not be covered as they are already promoted in other tax provisions.


The proposal would speed depreciation and allow businesses to expense up to US$100,000 for their alternative fuel vehicles.

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